The U.S. Court of Appeals for the Sixth Circuit ruled that the Federal Communications Commission’s 2024 Data Breach Reporting Rule is not “substantially the same” as the 2016 broadband-privacy regulation that Congress nullified under the Congressional Review Act (CRA). Writing for the 2-1 majority, Judge Jane Branstetter Stranch—joined by Judge Eric E. Murphy—concluded the 2024 rule targets only breach-notification obligations, whereas the 2016 regulation covered a far broader array of privacy requirements. Because the new measure addresses a narrower subject and contains material differences in reporting thresholds, definitions and notice requirements, the panel found the CRA’s bar on re-promulgating a previously disapproved rule does not apply. The decision in Ohio Telecom Association v. FCC is the first by a federal appeals court to interpret the CRA’s key phrase “substantially the same.” It rejects industry petitioners’ argument, adopted in Judge Raymond Kethledge Griffin’s dissent, that even limited overlap between the two rules should trigger the statutory prohibition. Absent Supreme Court review, the ruling preserves the FCC’s authority to require telecom and broadband providers to notify consumers and federal agencies when customer data are compromised. Beyond the immediate impact on breach-reporting obligations, the opinion gives regulators—and the companies they oversee—new guidance on how closely Congress’s disapproval resolutions constrain future agency action. It also sets an early precedent for post-Chevron administrative law, arriving just weeks after the Supreme Court’s Loper Bright decision eliminated mandatory judicial deference to agencies.
[Jonathan H. Adler] Does the Congressional Review Act Bar the FCC's Data Breach Reporting Rule? https://t.co/4o8z1xHymK
How different does a new regulation have to be to get around a resolution of disapproval under the Congressional Review Act? Until now, courts have avoided the question. 1/
Today a 6th Circuit panel held that a 2024 FCC rule is not "substantially the same" as a previously repealed 2016 FCC rule for purposes of the Congressional Review Act. This is the first appeals court decision to examine this aspect of the CRA in detail. https://t.co/u84NdD8hDg https://t.co/WyAREF0CsO